"For insurers, the message from Q2 is understanding a policy isn't the same as trusting the provider behind it. Closing that gap should be the priority for the second half of the year."
- Peer Jelendorf - Smart Money People
Smart Money People’s Q2 2026 UK Insurance Market Report found that customers are becoming more critical of the value and service they receive from their providers, as sentiment weakened in Q2.
The report, based on verified customer reviews submitted across life, home, travel, pet, vehicle, health, specialist and business insurance products, shows that overall customer satisfaction fell from 3.27 to 3.02 out of 5 between Q1 and Q2 2026, with advocacy and perceptions of fairness both declining.
A major factor in the Q2 data is the reversal in customer advocacy. In Q1, promoters still outnumbered detractors, but the results in Q2 flipped, pushing the Net Promoter Score (NPS) into negative territory for the first time this year as it dropped from +3.7 to -6.8. Promoters fell from 48% to 43%, and detractors rose from 44% to 50%.
Customer service ratings slipped from 3.20 to 2.98, value for money fell from 3.18 to 3.03, and ease of doing business dropped from 6.07 to 5.63.
Smart Money People's analysis points to unclear policy terms, poor communication, slow responses and frustration around renewals, cancellations and claims as the drivers behind the shift, alongside continued pressure on price.
52% of customers said they felt fairly treated by their insurer, even though 81% said they understood their policy details, a gap that Smart Money People describes as one of the clearest warning signs in the data. This is because customers who feel fairly treated are significantly more likely to recommend their provider, even after a difficult claim.
The strongest reviews in Q2 describe experiences that are easy to navigate, clearly explained and low effort. In contrast, the weakest describe customers left to do the chasing themselves, experiences which have proven to be particularly damaging when it coincides with a claim, cancellation or renewal increase.
Home insurance sees improvement across the board
Despite the overall decline in the wider market, home insurance was able to buck the trend, improving across every headline measure. Overall satisfaction rose from 3.77 to 4.24, and NPS went up from +28.2 to +52.3, with promoters increasing from 57% to 72% and detractors going down from 29% to 20%.
In addition, 91% of customers said they understood their policy, with 81% saying they felt fairly treated, and 84% saying the product met their needs. At the same time, customer service, value for money and ease of doing business all improved.
Smart Money People says the home insurance sector's stronger performance reflects a combination of competitive pricing, straightforward policy management, clear communication and helpful service. Although claims handling remains the biggest source of frustration even within this sector.
The report also tracks Smart Money People's Insurance Fairness Index, which combines policy understanding, perceptions of fair treatment, value for money and whether the product meets customer needs into one benchmark. The wider market scored 60.0 in Q2, against 84.6 for home insurance.
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"Q2 confirms that customers are no longer judging their insurer on price alone," Peer Jelendorf, CEO of Smart Money People, said. "They want confidence that when something goes wrong, they'll be treated fairly and supported without having to constantly chase for updates and end up doing the work themselves.
"Home insurance shows what's possible when providers get the fundamentals right: clear communication, fair pricing and helpful service that fills customers with confidence rather than leaving them facing delays and feeling frustrated. The rest of the market has a clear blueprint to follow.
"For insurers, the message from Q2 is understanding a policy isn't the same as trusting the provider behind it. Closing that gap should be the priority for the second half of the year."
